Comments on What can Washington do to Boost the Recovery?TypePad2013-01-09T17:10:15ZMark Thomahttp://economistsview.typepad.com/economistsview/tag:typepad.com,2003:http://economistsview.typepad.com/economistsview/2013/01/-what-can-washington-do-to-boost-the-recovery/comments/atom.xml/The Keystone Garter commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c35c536ad970b2013-01-14T22:44:07Z2013-01-14T22:44:07ZThe Keystone GarterI'm pretty sure turning existing petro production into petrochemicals products, is the easiest way to wean off an AGW dystopia,...<p>I&#39;m pretty sure turning existing petro production into petrochemicals products, is the easiest way to wean off an AGW dystopia, the Western world set course for after WWII was won by bombing German oil.<br />
Basically, to cap the number of pandora&#39;s boxes, a set of products can be postulated. There are many solutions, but the simpler ones will be more likely to succeed; not using some sci-fi innovations like AI, new chemical WMds, etc...<br />
A utility-grade battery made (mostly) of plastic components that are recyclable, thermoplastics, is high ROI. Right now, there are thermoplastics and all-plastic batteries, but not both. I&#39;m not sure the present and future footprints of such materials if they are invented. But if the thermoplastics are recylable easily, they could be used for future pandemic PPE if desired (robotic ventilators, plastic tents and suits and biosensors). Locating recycling facilities and funding such University R+D is a precursor. Unless you want made in USA cotton T-shirts mid century.</p>SUTM commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee73f5c19970d2013-01-11T21:05:30Z2013-01-11T21:05:30ZSUTMhttp://www.betrayaloftheworkingclass.comWashington should read my economic theory to dig us out (what’s more after all my denigrating of 'game theory' my...<p>Washington should read my economic theory to dig us out (what’s more after all my denigrating of &#39;game theory&#39; my theory has all the hallmarks of it!!)</p>
<p>My theory utilises engineering tolerance approaches to international trade and interestingly in a Post Keynesian world achieves the closed economy benefits of fiscal intervention in an open economic environment.</p>
<p>My article is a bit rough around the edges and will need further elaboration over time, but it is my starter for 10 and appears far better than Austerity, lame Fiscal and non sensical Monetary ideas.</p>
<p><a href="http://betrayaloftheworkingclass.com/?p=21" rel="nofollow">http://betrayaloftheworkingclass.com/?p=21</a><br />
</p>cm commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee73cf9b6970d2013-01-11T17:00:56Z2013-01-11T17:00:56ZcmI wasn't aware of that, but certainly it would be strange if I were there first to have observed this.<p>I wasn&#39;t aware of that, but certainly it would be strange if I were there first to have observed this.</p>Darryl FKA Ron commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c3596e66d970b2013-01-11T12:49:22Z2013-01-11T12:49:22ZDarryl FKA RonYep, yep!<p>Yep, yep!</p>Darryl FKA Ron commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c3596e30e970b2013-01-11T12:47:56Z2013-01-11T12:47:56ZDarryl FKA RonGood point and one made quite well long ago by Robert Hunter in his book "Revolution: How, Why, When."<p>Good point and one made quite well long ago by Robert Hunter in his book &quot;Revolution: How, Why, When.&quot;</p>cm commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c35938188970b2013-01-11T06:14:43Z2013-01-11T06:14:43ZcmOnly WW2 preempted this pattern, and it is highly dubious whether both the European resistance and the Soviet Union could...<p>Only WW2 preempted this pattern, and it is highly dubious whether both the European resistance and the Soviet Union could have defeated the Axis without the considerable US assistance they all got, not only by way of direct military intervention, but also logistics, weapons, and technology.</p>
<p>The resolution to the mess for Western and Central Europe was installing parliamentary democracies based on socialdemocratic principles, which worked for a good while, until &quot;American&quot; business paradigms were (re)introduced to make economies more &quot;efficient&quot; and &quot;competitive&quot; - shareholder value, deregulation, financialization, safety net &quot;reforms&quot; etc.<br />
</p>cm commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fc25e34970c2013-01-11T06:14:03Z2013-01-11T06:14:03ZcmIn the context of pre-WW2 Europe, both socialist/communist and ultraconservative/fascist movements were serious contenders. In almost all cases, the latter...<p>In the context of pre-WW2 Europe, both socialist/communist and ultraconservative/fascist movements were serious contenders. In almost all cases, the latter gained the upper hand, usually with the support of incumbent business/social elites who after all had little doubt who better represented their parochial interests.</p>cm commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee736abae970d2013-01-11T05:52:21Z2013-01-11T05:52:21Zcm"We need Republicans to fail to fix it... or better, institute their austerity programs and watch it crash HARD. Only...<p>&quot;We need Republicans to fail to fix it... or better, institute their austerity programs and watch it crash HARD.</p>
<p>Only then can we possibly ...begin to build a new economic policy built on sound, long-term sustainable policies.&quot;</p>
<p>Some early 20th centuries German left-wing socialists were espousing similar theories, reasoning that only drastically deteriorating living conditions for the general public would discredit the prevailing social paradigm, and bring about a socialist revolution. The situation pretty much came to that point in the early 1930&#39;s, and a revolution of sorts happened, but it went the other way. There has been related evidence from other nations and periods suggesting the most likely outcome is extreme right-wing authoritarianism. Probably not quite what you are envisioning, and no, it won&#39;t bring about anything close to your envisioned solutions.<br />
</p>Matt Young commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c358d4df1970b2013-01-10T18:32:01Z2013-01-10T18:32:01ZMatt Young"fear of deficits and fear of inflation " ------ The public sector pension funds need a safe return of 2.5%....<p>&quot;fear of deficits and fear of inflation &quot;<br />
------</p>
<p>The public sector pension funds need a safe return of 2.5%. To prevent civil war in the Democratic Party, the DC needs a &quot;snap to&quot; GDP of 2.7%. Obama agrees with me, he is worried about California funds becomingt short.</p>Darryl FKA Ron commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fb90d27970c2013-01-10T12:25:50Z2013-01-10T12:25:50ZDarryl FKA Ron:<p>:&lt;)</p>Invisible Backhand commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c358572a2970b2013-01-10T02:50:06Z2013-01-10T02:50:06ZInvisible BackhandThe President could announce the State Department and Armed Forces will no longer assist multinationals outside the USA's borders. Local...<p>The President could announce the State Department and Armed Forces will no longer assist multinationals outside the USA&#39;s borders. Local bureaucrat wants a bribe? Go to the local police. Local police leaning on you? Go to the local bureaucrat.</p>
<p>Watch the jobs come rushing back to the safe harbor of America.</p>
<p>While this scenario is fantastical, the principle is sound and there exists an infinite spectrum of policy options that would &#39;encourage&#39; MNC&#39;s to book the true costs of the benefits the US taxpayer subsidizes for them.</p>SUBNET MASK commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee728cbb3970d2013-01-10T02:48:44Z2013-01-10T02:48:44ZSUBNET MASKhttps://www.youtube.com/watch?v=TD1MW-nyhxg<p><a href="https://www.youtube.com/watch?v=TD1MW-nyhxg" rel="nofollow">https://www.youtube.com/watch?v=TD1MW-nyhxg</a><br />
</p>anne commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fb42f30970c2013-01-10T02:27:47Z2013-01-10T02:27:47ZanneDo I ever have trouble with this study, I could argue either way with no conviction, the reason being that...<p>Do I ever have trouble with this study, I could argue either way with no conviction, the reason being that so far there is no reason to think the Affordable Care Act will lessen the rise in healthcare prices though healthcare spending may rise at a slower rate. The data so far show no favorable change in trend that can be attributed to the ACA.</p>
<p>While the ACA is surely necessary even if needing fixing because of the need for broader healthcare insurance coverage, favorable trend isolation has not been found by physician-researchers I trust.</p>bakho commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fb429d9970c2013-01-10T02:25:18Z2013-01-10T02:25:18ZbakhoAusterity at work. The beatings will continue until morale improves.<p>Austerity at work. The beatings will continue until morale improves.</p>Mark A. Sadowski commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee72882b2970d2013-01-10T02:13:42Z2013-01-10T02:13:42ZMark A. Sadowski"One thing that struck me in recent discussion posted online is that economists of different stripes have said that a...<p>&quot;One thing that struck me in recent discussion posted online is that economists of different stripes have said that a gov&#39;t draft would reduce unemployment, but then dismissed the idea.&quot;</p>
<p>Perhaps you&#39;re thinking about this:</p>
<p><a href="http://www.slate.com/blogs/moneybox/2013/01/06/fiscal_stimulus_debate_endless_frustration.html" rel="nofollow">http://www.slate.com/blogs/moneybox/2013/01/06/fiscal_stimulus_debate_endless_frustration.html</a></p>
<p>January 6, 2013</p>
<p>The Frustrating Fiscal Stimulus Debate<br />
By Matthew Yglesias</p>
<p>&quot;...Ramey in response has time-series data from throughout the twentieth century which points to low multipliers for government spending—multipliers below one.</p>
<p>But this is overwhelmingly drawn from periods when Krugman would concede that fiscal policy multipliers ought to be low, because with interest rates not constrained by the zero bound the Federal Reserve is ultimately controlling the level of aggregate demand. Ramey then has an interesting look at World War II where she argues that essentially the entire reduction in unemployment can be accounted for by conscription. So we&#39;re left with the conclusion that we could sharply reduce unemployment by conscripting young people (youth unemployment is above average, we note) and sending them to fight in a war but this would be unlikely to raise welfare...&quot;</p>Mark A. Sadowski commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee7287b4d970d2013-01-10T02:10:29Z2013-01-10T02:10:29ZMark A. Sadowski"However, that idea is right next door to the CCC and WPA of the Great Depression." At peak, there were...<p>&quot;However, that idea is right next door to the CCC and WPA of the Great Depression.&quot;</p>
<p>At peak, there were 3.653 million workers employed as Federal Emergency Relief Workers (FERW), which included the Civil Works Administration (CWA), the Emergency Work-Relief Program (EWRP) and the Civilian Conservation Corps (CCC) etc., in 1936:</p>
<p><a href="http://www.nber.org/papers/w0088.pdf" rel="nofollow">http://www.nber.org/papers/w0088.pdf</a></p>
<p>This represented about 7.1% of the labor force at a payroll expense of $2.17 billion dollars. This came to about 2.6% of GDP or over a quarter of the federal budget. </p>
<p>In today&#39;s terms that would be the equivalent of employing about 11 million workers at a payroll expense of over $400 billion dollars. </p>Mark A. Sadowski commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c35850351970b2013-01-10T01:56:38Z2013-01-10T01:56:38ZMark A. Sadowski"If anything ACA will be mildly stimulative as it will increase healthcare purchases and much of that money will go...<p>&quot;If anything ACA will be mildly stimulative as it will increase healthcare purchases and much of that money will go into the local economies.&quot;</p>
<p>New Jobs Through Better Health Care<br />
David Cutler, Neeraj Sood and Leonard D. Schaeffer <br />
January 2010</p>
<p>Introduction and Summary:<br />
&quot;One in ten Americans remains out of work today as the two-year-long Great Recession gives way at last to a slow economic recovery. Dealing with persistent unemployment is one of the top priorities of President Barack Obama and the leaders of Congress. One important way to create jobs is to slow the growth of medical spending. If health care cost increases slow down, then businesses will find it more profitable to expand employment, and workers will more readily move into those new jobs. </p>
<p>This paper will demonstrate the potential impact of health care reform on employment growth in the new decade, examining two recent studies and then combing their estimates of potential employment growth. The first study, by health economists Neeraj Sood at the Leonard D. Schaeffer Center for Health Policy and Economics and School of Pharmacy at the University of Southern California, and Arkadipta Ghosh and José Escarce at Mathematica and University of California Los Angeles, shows the significant negative impact of rising health care costs on employment as firms struggle with health costs that they cannot pass along fully to workers or consumers.1 The second study, by health economists David Cutler of Harvard University and Karen Davis and Kristof Stremikis of the Commonwealth Fund, estimates that health care reform will slow the growth of health care costs and health insurance premiums.2 </p>
<p>In the analysis that follows, we combine these two studies to show that health care reform could increase the number of jobs in the United States by about 250,000 to 400,000 per year over the coming decade.&quot;</p>
<p><a href="http://www.americanprogress.org/wp-content/uploads/issues/2010/01/pdf/health_care_jobs.pdf" rel="nofollow">http://www.americanprogress.org/wp-content/uploads/issues/2010/01/pdf/health_care_jobs.pdf</a></p>DrDick commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fb32ace970c2013-01-10T00:33:08Z2013-01-10T00:33:08ZDrDickThis is simply silly and much like the false claims that raising the minimum wage kills jobs. If anything ACA...<p>This is simply silly and much like the false claims that raising the minimum wage kills jobs. If anything ACA will be mildly stimulative as it will increase healthcare purchases and much of that money will go into the local economies.</p>PJR commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fb23a12970c2013-01-09T22:44:59Z2013-01-09T22:44:59ZPJRJohn Q, there are economists who would say the opposite, and make a lot more money for saying it. (And...<p>John Q, there are economists who would say the opposite, and make a lot more money for saying it. (And people wonder what&#39;s wrong with macro.)</p>Mark A. Sadowski commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c358352d8970b2013-01-09T22:40:57Z2013-01-09T22:40:57ZMark A. Sadowski"Employers, already beat to hell by the recession, have lots of concerns about lots of problems." Yes, so do workers,...<p>&quot;Employers, already beat to hell by the recession, have lots of concerns about lots of problems.&quot;</p>
<p>Yes, so do workers, or so I&#39;ve heard. Given that employers taking credit for job creation is analogous to squirrels taking credit for evolution, perhaps we should be concerned about workers too.</p>
<p>P.S. You&#39;re doing a good job keeping the mysterious &quot;concerns&quot; about the unknown &quot;problems&quot; a secret. If it weren&#39;t for all the risky risks and uncertain uncertainties what would we have to worry about? </p>
<p>(Don&#39;t look under your bed. It&#39;s Obamacare. BOO!) </p>Mark A. Sadowski commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee726795b970d2013-01-09T22:21:41Z2013-01-09T22:21:41ZMark A. SadowskiI've been waiting for this moment. https://www.youtube.com/watch?v=1oru1GlCoVU<p>I&#39;ve been waiting for this moment.</p>
<p><a href="https://www.youtube.com/watch?v=1oru1GlCoVU" rel="nofollow">https://www.youtube.com/watch?v=1oru1GlCoVU</a></p>anne commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c3582caa8970b2013-01-09T21:44:41Z2013-01-09T21:44:41ZanneThose of us who make the nuts-and-bolts of health care work on a daily basis have a lot of concerns....<p>Those of us who make the nuts-and-bolts of health care work on a daily basis have a lot of concerns.</p>
<p>Employers, already beat to hell by the recession, have lots of concerns about lots of problems.</p>
<p>[ This is of course no answer at all, and is rather ridiculous. Simply say you do not care to tell what you know, and that will be fine. I, by the way, also have lots of concerns about lots of problems. ]</p>save_the_rustbelt commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c358247fd970b2013-01-09T20:46:42Z2013-01-09T20:46:42Zsave_the_rustbeltThose of us who make the nuts-and-bolts of health care work on a daily basis have a lot of concerns....<p>Those of us who make the nuts-and-bolts of health care work on a daily basis have a lot of concerns.</p>
<p>Employers, already beat to hell by the recession, have lots of concerns about lots of problems.</p>Dan Kervick commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c358239bd970b2013-01-09T20:39:58Z2013-01-09T20:39:58ZDan Kervick"If the economic profession has shifted to the center left, why is nobody promoting those ideas?" Because all of those...<p>&quot;If the economic profession has shifted to the center left, why is nobody promoting those ideas?&quot;</p>
<p>Because all of those ideas are now regarded as far left.<br />
</p>Dan Kervick commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c35822463970b2013-01-09T20:30:40Z2013-01-09T20:30:40ZDan KervickGreat comment Min. As much as I criticize Obama and attempt to analyze his mind, I honestly can't say I...<p>Great comment Min. As much as I criticize Obama and attempt to analyze his mind, I honestly can&#39;t say I have any clear idea about why he doesn&#39;t think of unemployment as a really big deal. The only thing I can think of is that the districts in which he came of age politically as an activist and politician routinely have unemployment rates that are so ghastly that he just can&#39;t make himself think that figures like 8% or 9% are any great shakes.</p>Edward Lambert commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fb0ce0e970c2013-01-09T20:03:52Z2013-01-09T20:03:52ZEdward LambertWe are about to watch the collapse of capitalism. It won't be pretty. Remember these words in two years.<p>We are about to watch the collapse of capitalism. It won&#39;t be pretty. Remember these words in two years.</p>Darryl FKA Ron commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fb0bc96970c2013-01-09T19:55:17Z2013-01-09T19:55:17ZDarryl FKA RonSorry buddy, but IMO cynicism comes off kind of lame unless spiced heavilty with sardonic humor, irony, and clever sarcasm....<p>Sorry buddy, but IMO cynicism comes off kind of lame unless spiced heavilty with sardonic humor, irony, and clever sarcasm. Just getting all dark and sour and sarcastically cynical might give you some release, but it won&#39;t carry all that well. Besides where wisdom fails us then only our good humor can carry us through. Bad humor, not so much.</p>Darrell commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fb0908a970c2013-01-09T19:33:29Z2013-01-09T19:33:29ZDarrellIf we want to fix the economy, it would be pie. 1) Tax on money as it leaves the country,...<p>If we want to fix the economy, it would be pie.</p>
<p>1) Tax on money as it leaves the country, large enough to balance foreign trade.</p>
<p>2) Top marginal income tax rate of 95%, with massive deductions for actually spending your money.</p>
<p><br />
If you produce 1000x the average person, then you should receive 1000x the average from the economy. Good... now spend that money consuming the goods and services of those 1000 people that are consuming your output.</p>
<p>What we can&#39;t allow is for those 1000 people to buy from you on debt, then you hoard the money generated from that debt. If the rich hoard the money, then those with debt can not possibly repay the debt and the economy will cease to function unless we make it possible for people to keep going ever deeper into debt. We need to keep the money moving WITHIN our economy. </p>
<p>We need to reverse our policies of embracing trade imbalances and funding them through unsustainable debt growth.</p>John Cummings commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fb0838d970c2013-01-09T19:27:00Z2013-01-09T19:27:00ZJohn CummingsJust lift up government investment up. You could even cut other parts of the budget with minimal impact while lifting...<p>Just lift up government investment up. You could even cut other parts of the budget with minimal impact while lifting this important feature. </p>
<p>Really, it is a simple and easy course. It is the natural way government &quot;creates jobs&quot; without any big hoopla. The truth is, the debt has really come down, servicing is coming down. Debt forgiveness and tax cuts are passe right now. It would also help support the credit based system. </p>
<p>Lets note that Clinton and Obama tried to make this happen, but were shot down. To many people on here are to grandiose. Simple things in the fiscal world can help. </p>
<p>Other ways to &quot;help&quot; are there as well outside the fiscal world. </p>Darrell commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c3581a195970b2013-01-09T19:25:59Z2013-01-09T19:25:59ZDarrell"One economist said that the reason that we want to reduce unemployment is to increase consumption. Let's get our priorities...<p>&quot;One economist said that the reason that we want to reduce unemployment is to increase consumption. Let&#39;s get our priorities straight. Reducing unemployment is a goal in itself.&quot;</p>
<p><br />
Paaahlease. The economy exists to ensure the rich can get richer. If lowering unemployment makes the rich even richer, then it is a good thing. If lowering unemployment can only be done by making the rich less rich, then it is not the correct thing to do.</p>
<p> </p>Darryl FKA Ron commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fb07f06970c2013-01-09T19:24:35Z2013-01-09T19:24:35ZDarryl FKA RonAmen Min!<p>Amen Min!</p>Darryl FKA Ron commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fb07366970c2013-01-09T19:19:06Z2013-01-09T19:19:06ZDarryl FKA RonLets not conflate fear with a political wedge issue. [Sorry! Don't worry, I am at least as cynical as you....<p>Lets not conflate fear with a political wedge issue.</p>
<p>[Sorry! Don&#39;t worry, I am at least as cynical as you. I was just agreeing with Thoma, but primarily on the do nothing part. The fear part is just an effective cover story for most of them. However, you must consider that some politicians and many Republicans, although I cannot be sure which ones, just may be as dumb as they look. The rest, except the few dissenters, are just lying dogs.]<br />
</p>Min commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c35818776970b2013-01-09T19:12:05Z2013-01-09T19:12:05ZMinOne thing that struck me in recent discussion posted online is that economists of different stripes have said that a...<p>One thing that struck me in recent discussion posted online is that economists of different stripes have said that a gov&#39;t draft would reduce unemployment, but then dismissed the idea. OC, we don&#39;t really want to force a lot of people into the military. However, that idea is right next door to the CCC and WPA of the Great Depression. If the economic profession has shifted to the center left, why is nobody promoting those ideas? (Not that they would pass Congress now, but we are talking about what should be done, not what is politically feasible.) </p>
<p>One economist said that the reason that we want to reduce unemployment is to increase consumption. Let&#39;s get our priorities straight. Reducing unemployment is a goal in itself. Unemployment means human suffering. Unemployment is a public health problem. People die from unemployment, and not just from suicide. The death rate more or less doubles during unemployment. People get physically sick. People get psychological disorders. Families break up. Pelosi talks about shared sacrifice, by which she means that the rich become less rich than otherwise. But you really cannot compare the two. As Fed President Evans says, why aren&#39;t we acting like our hair is on fire?</p>
<p>There is a real possibility that we are in a suboptimal equilibrium. In that case, there is no systemic recovery. One way to get out of a suboptimal equilibrium is to change the payoffs. That would mean gov&#39;t intervention. As we know, there are arguments against just about every intervention. What we also know is that we do not know what to do. If we did, we would have done it. During the Great Depression Roosevelt tried a number of things, and if something did not seem to work he tried something else. That is the right approach when you don&#39;t know what works. America is known for its pragmatism, but now we are twiddling our thumbs while Congress blusters about the budget.</p>
<p>(When I was a kid I saw Eleanor Roosevelt on TV. She read the lyrics to the popular song, &quot;High Hopes&quot;, while the orchestra played it behind her. The song is about persistence in the face of daunting odds, one of our American virtues. See <a href="http://www.lyrics.com/high-hopes-lyrics-frank-sinatra.html" rel="nofollow">http://www.lyrics.com/high-hopes-lyrics-frank-sinatra.html</a> . After his election Obama told us, &quot;Yes, we can!&quot; Well, we could have, and we still can, but we haven&#39;t yet.)</p>
<p>It is high time to forget this nonsense about gov&#39;t not creating jobs and do some direct hiring. Even if all that does is to move us to another suboptimal equilibrium, it&#39;s better than what we have now.</p>Darryl FKA Ron commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee724d54b970d2013-01-09T19:11:57Z2013-01-09T19:11:57ZDarryl FKA RonI tend to believe that you are correct. What we have though is a Republican party that many life long...<p>I tend to believe that you are correct. What we have though is a Republican party that many life long Republicans have no faith in and a Democratic party that offers us a middle road that is not quite as bad as that desired by crazy Republicans. It&#39;s just neoliberalism with either a greatly parred down social insurance or a somewhat less parred down social insurance. In either case corporatism, financialization, globalization, and low taxes on capital gains are baked in the neoliberal cake. You can almost hear Marie Antoinette saying &quot;Let them eat cake.&quot;</p>Chris commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee724c251970d2013-01-09T19:02:34Z2013-01-09T19:02:34ZChrisThumbs down for not having the courage to call for increased government spending / stimulus in the MoneyWatch article that...<p>Thumbs down for not having the courage to call for increased government spending / stimulus in the MoneyWatch article that has more public reach.</p>anne commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee724ac88970d2013-01-09T18:53:01Z2013-01-09T18:53:01ZanneDelay some Obamacare implementation dates by a year or two so we don't have a giant train wreck 1/1/14. [...<p>Delay some Obamacare implementation dates by a year or two so we don&#39;t have a giant train wreck 1/1/14.</p>
<p>[ This would need to be explained, for I have found no such argument from physician-researchers who are critics of the viability of the Affordable Care Act. ]</p>Patrick Dore commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee7248134970d2013-01-09T18:31:45Z2013-01-09T18:31:45ZPatrick DoreThanks Mark for fighting this battle along with Krugman! Here's a White House petition that calls for more stimulus: https://petitions.whitehouse.gov/petition/initiate-substantial-fiscal-stimulus-create-new-jobs-and-help-economy/cXWnSBh0<p>Thanks Mark for fighting this battle along with Krugman! Here&#39;s a White House petition that calls for more stimulus:</p>
<p><a href="https://petitions.whitehouse.gov/petition/initiate-substantial-fiscal-stimulus-create-new-jobs-and-help-economy/cXWnSBh0" rel="nofollow">https://petitions.whitehouse.gov/petition/initiate-substantial-fiscal-stimulus-create-new-jobs-and-help-economy/cXWnSBh0</a></p>Darrell commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee72475a9970d2013-01-09T18:25:41Z2013-01-09T18:25:41ZDarrellIf providing healthcare to more people will indeed be a train wreck, will it be better to have that train...<p>If providing healthcare to more people will indeed be a train wreck, will it be better to have that train wreck 1/1/15 or 1/1/16 instead of 1/1/14?</p>
<p>We had an election. Obamacare fear mongering lost.</p>Darrell commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c35811990970b2013-01-09T18:17:26Z2013-01-09T18:17:26ZDarrellI think it is more than just a wedge issue. The super rich see that we can't keep generating 10%...<p>I think it is more than just a wedge issue.</p>
<p>The super rich see that we can&#39;t keep generating 10% of GDP new debt forever. An economy based on trade imbalances and unsustainable debt growth is nearing the end of the inevitable end game of too much debt.</p>
<p>There will be two possible solutions to this. 1) going back to the 1940s/50s economy with balanced international trade and 95%+ top marginal tax rates to get money back into circulation and rebuild the middle class. Or 2) Allow the middle class to crash to the level of 3rd world serfs, with them maintaining their role as masters of the universe.</p>
<p>Their attempts to push the agenda of lower taxes and lower government sending is simply an attempt to make it option 2. </p>save_the_rustbelt commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c3581158c970b2013-01-09T18:15:31Z2013-01-09T18:15:31Zsave_the_rustbeltDelay some Obamacare implementation dates by a year or two so we don't have a giant train wreck 1/1/14.<p>Delay some Obamacare implementation dates by a year or two so we don&#39;t have a giant train wreck 1/1/14.</p>Darrell commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3faff0aa970c2013-01-09T18:13:04Z2013-01-09T18:13:04ZDarrellBut, if you cut taxes for the job creators, the job creators will use the extra money to create more...<p>But, if you cut taxes for the job creators, the job creators will use the extra money to create more jobs (in India and China). </p>A Common Anomaly commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee7244cac970d2013-01-09T18:06:18Z2013-01-09T18:06:18ZA Common Anomaly It has nothing to do with fear. The ones who are most vocal about our deficits are Republicans. As history...<p>It has nothing to do with fear. The ones who are most vocal about our deficits are Republicans. As history shows, they are not afraid of deficits. In fact, &quot;Reagan proved that deficits don&#39;t matter&quot;.</p>
<p>Lets not conflate fear with a political wedge issue. </p>John Q commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017c3581018e970b2013-01-09T18:06:11Z2013-01-09T18:06:11ZJohn Qhttp://ifonlytheydaskedme.blogspot.com/I wish you had made it clear that by "tax cuts" you meant cuts for low to moderate earners, who...<p>I wish you had made it clear that by &quot;tax cuts&quot; you meant cuts for low to moderate earners, who would be likely to spend any tax savings, as against cuts for high income people, who already have their material needs more than satisfied, and who would be looking for places to &quot;invest&quot; any tax savings, places like - oh, I don&#39;t know - mortgage backed securities, say. </p>Darrell commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee72446ca970d2013-01-09T18:03:35Z2013-01-09T18:03:35ZDarrellThis is why I hopes Obama would lose. Sure, the crash happened on Bush's watch, but there is still a...<p>This is why I hopes Obama would lose.</p>
<p>Sure, the crash happened on Bush&#39;s watch, but there is still a huge portion of the population blaming it on everything from Dems taking over congress to Obama crushing the robust recovery that would have happened without him.</p>
<p>We need Republicans to fail to fix it... or better, institute their austerity programs and watch it crash HARD. </p>
<p>Only then can we possibly begin to throw off the lies that our current economic paradigm is built upon, and begin to build a new economic policy built on sound, long-term sustainable policies.</p>Darrell commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017d3fafd4d4970c2013-01-09T18:00:22Z2013-01-09T18:00:22ZDarrellIncrease wages of labor? What are you a communist? The economy exists to ensure the rich can get richer, and...<p>Increase wages of labor? What are you a communist? </p>
<p>The economy exists to ensure the rich can get richer, and this is done by ensuring everyone else can go ever deeper into debt, creating the money that the rich are accumulating. </p>
<p>How does increasing the wage of labor make the rich richer or allow everyone else to go further into debt...</p>
<p>Increase the wage of labor? Increase the wage of labor!?</p>
<p>Next thing you&#39;ll be talking about is &quot;fair&quot; and &quot;social good&quot;. Pinko, commie! </p>Edward Lambert commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee72436d6970d2013-01-09T17:56:43Z2013-01-09T17:56:43ZEdward LambertAgreed... even the fear of inflation is blocking policies that might increase real wages of labor.<p>Agreed... even the fear of inflation is blocking policies that might increase real wages of labor.<br />
</p>Darryl FKA Ron commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee7241b51970d2013-01-09T17:44:10Z2013-01-09T17:44:10ZDarryl FKA RonPolicymakers are unlikely to do more to help the economy recover, the question is whether fear of deficits and fear...<p>Policymakers are unlikely to do more to help the economy recover, the question is whether fear of deficits and fear of inflation will cause them to adopt policies that make it worse.</p>
<p>[Good answer!]</p>Darryl FKA Ron commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee72419d6970d2013-01-09T17:43:29Z2013-01-09T17:43:29ZDarryl FKA RonOR, perhaps it is time to address the underlying root flaws in our economy that make us dependent on unsustainable...<p>OR, perhaps it is time to address the underlying root flaws in our economy that make us dependent on unsustainable debt in the first place... money leaking from circulation via international trade deficits and widening wealth disparity.</p>
<p>[Probably not in my lifetime, but I am almost 64. Kids growing up today will know that something is wrong. Very few kids growing up in my time could ever see what was slowly transpiring. If you are young enough, then you might see this change that you are waiting for. I thought 2008 would change everything, but it changed nothing except that it ended a lot of the complacent denial that I had been putting up with for forty years. Good luck.]</p>Darrell commented on ' What can Washington do to Boost the Recovery?'tag:typepad.com,2003:6a00d83451b33869e2017ee7240606970d2013-01-09T17:35:30Z2013-01-09T17:35:30ZDarrellYes... we can rely on the same trick we've been using for the last 30+ years... increase debt. OR, perhaps...<p>Yes... we can rely on the same trick we&#39;ve been using for the last 30+ years... increase debt.</p>
<p><br />
OR, perhaps it is time to address the underlying root flaws in our economy that make us dependent on unsustainable debt in the first place... money leaking from circulation via international trade deficits and widening wealth disparity. </p>